Thursday, March 6, 2014
New GAO Report on "Retirement Security: Trends in Marriage, Work, and Pensions May Increase Vulnerability for Some Retirees"
The decline in marriage, rise in women's labor force participation, and transition away from defined benefit (DB) plans to defined contribution (DC) plans have resulted in changes in the types of retirement benefits households receive and increased vulnerabilities for some. Since the 1960s, the percentage of unmarried and single-parent families has risen dramatically, especially among low-income, less-educated individuals, and some minorities. At the same time, the percentage of married women entering the labor force has increased. The decline in marriage and rise in women's labor force participation have affected the types of Social Security benefits households receive, with fewer women receiving spousal benefits today than in the past. In addition, the shift away from DB to DC plans has increased financial vulnerabilities for some due to the fact that DC plans typically offer fewer spousal protections. DC plans also place greater responsibility on households to make decisions and manage their pension and financial assets so they have income throughout retirement. As shown in the figure below, despite Social Security's role in reducing poverty among seniors, poverty remains high among certain groups of seniors, such as minorities and unmarried women. These vulnerable populations are more likely to be adversely affected by these trends and may need assistance in old age.
Tuesday, March 4, 2014
Michael Astrue, who served as Commissioner of the Social Security Administration for six years, has written a blog post for the Special Needs Alliance on working with SSA. It's a must read for anyone who has dealings with the agency.
Sunday, February 23, 2014
Penn State Dickinson School of Law has frequently hosted visiting academics from Ukraine. I've had the privilege of working with very talented, engaged scholars on choice of law issues, conflicts of law, family law, and filial support questions. I've been thinking a lot about my friends as I follow the news about violence and change in Kiev during the struggles over the future for the country. We did not always agree on the law, but our debates were always spirited. I hope they are safe. Knowing how committed the lawyers I've met have been to modernization and the rule of law, I can only imagine how painful this period must be.
In 2012, I was invited to publish an article, "Filial Support Laws in the United State and Ukraine," for a Ukrainian journal on family law. I later expanded my analysis for the University of Illinois' Elder Law Journal, as an opportunity to compare domestic and international trends in use of such laws to compel adult children to pay for costs to care for aging parents. In this effort, I was guided by several people, including my Penn State colleague and noted Russian law scholar, Professor William Butler, in going beyond literal translations of Ukraine statutes and to examine case reports that shed light on the potential strengths or weaknesses of different systems of enforcement. As I wrote in my second article, the Ukraine cases "demonstrate the impact of poverty -- and the importance of even a few 'dollars' extra per month - for the elder parent" for any country struggling to create a viable economic system, including former Soviet block countries.
My thoughts go out to the families, including their elders, who face uncertainty during these challenging times and who deserve a brighter future.
Friday, February 14, 2014
Via University of Michigan Retirement Research Center, a call for papers connected to an upcoming conference:
With support from AARP, a conference on Social Insurance and Lifecycle Events Among Older Americans will be held on December 5th of 2014 in Washington, DC.
The conference will focus specifically on lifecycle events commonly encountered by older Americans, the responsiveness of current policies to those events, and new thinking about policies consistent with a changing political environment.
The conference will be organized into three sections dealing with the importance of:
- changing career/job patterns,
- changes in family structure, and
- health limitations.
Papers should focus on experiences and policies aimed at addressing Americans age 50 and older and highlight the experiences of different socio-economic groups, with a particular emphasis on the disadvantaged.
Funding is available for domestic travel to the conference for one author of each paper to be presented. It is anticipated that either a special issue of a scholarly journal or an edited volume will be produced based on papers delivered at the conference.
Paper proposals for the conference should be sent to Professor Kenneth Couch by March 15, 2014. Authors will be notified of acceptances by April 15, 2014. Drafts of papers to be presented at the conference will be due by the end of October. Additional details here.
Saturday, January 18, 2014
New report from SSA's Office of Retirement and Disability Policy addresses SS, SSI participation rates by African Americans
African Americans: Description of Social Security and Supplemental Security Income Participation and Benefit Levels Using the American Community Survey
Patricia P. Martin and John L. Murphy
Research and Statistics Note No. 2014-01 (released January 2014)
Intro/summary: African Americans encounter significant economic disadvantages, making them a critical focus for social insurance programs. Examining how the African American population uses Old-Age, Survivors, and Disability Insurance (OASDI, or Social Security) benefits and Supplemental Security Income (SSI) payments clarifies the role these programs play in supporting at-risk populations.
Earlier research has explored various facets of the relationship between Social Security and African Americans. For instance, many studies investigate African Americans' low retirement benefit receipt rates relative to whites (Abbott 1977, 1980; Thompson 1975; Huntley 1979; Parsons 1980; Gibson 1987, 1991, 1994; Farley 1988; Hayward, Friedman, and Chen 1996; O'Rand 1996; Gendell and Siegel 1996; Choi 1997; Hendley and Bilimoria 1999; Gustman and Steinmeier 2004; Bridges and Choudhury 2007, 2009; Favreault 2010). Others examine the prominent role of children's benefits for African Americans (Newcomb 2003/2004; Tamborini, Cupito, and Shoffner 2011). This analysis contributes to that body of research by using a relatively new, publicly available, and comprehensive data source, the American Community Survey (ACS), to document the demographic and economic characteristics of African American OASDI beneficiaries and SSI recipients. It is designed to lay the groundwork for future detailed analyses of how African Americans interact with Social Security and related programs.
In this note, we first discuss the strengths of the ACS and the methodology of this analysis. Next, we present the demographic and economic characteristics of the African American population in the 2009 ACS. Then, we present ACS data on OASDI and SSI participation and benefit levels, comparing African American participants with overall participants in three age distributions: the full age range for which benefit statistics are available in the ACS (15 or older), working age (18–61), and retirement age (62 or older).
Wednesday, January 15, 2014
From the National Senior Citizens Law Center, here is a link to a new issue brief on problems stemming from the Social Security Administration's lack of a fair and uniform system to input and track appeals by SSI recipients.
As the good folks at NSCLC point out, "SSI recipients too often face roadblocks at reconsideration, the first stage of the appeal process.... SSA's failure to process appeal requests can leave SSI recipients without the subsitence income they rely on to pay for food, housing, and medical care."
Friday, November 22, 2013
I suspect that headline got your attention, right? Before you starting questioning my sanity, the idea -- and the reasons -- are offered by none other than Nobel-prize-celebrated economist Paul Krugman in his New York Times editorial, "Expanding Social Security." Here's a taste: "America’s overall retirement system is in big trouble. There’s just one part of that system that’s working well: Social Security."
Update: By coincidence, at almost the same time I posted the original link to Krugman's editorial, Blogging Colleague Becky Morgan posted a piece about "70" potentially being a better age to begin full retirement benefits, linking to a report from the Center for Retirement Research at Boston College. Krugman addresses the "70-is-better-because-people-are-living-longer" argument, pointing to a disparate impact on those with low income and less education, who have not seen a significant rise in life expectancy. Useful point/counterpoint materials for discussion, perhaps.
Friday, October 18, 2013
Another consequence of tough financial times is the unaffordability of professional long-term care. But in Greece, that phenomenon has an additional component, as families apparently need the elder's pension to make ends meet in the family home. Pennsylvania Elder Law attorney Dionysios C. Pappas (great name, right? Although we all call him "Dennis"), shared an article from Greece, "Care Homes See Mass Exodus," and suggested these key excerpts:
“…Grandma and grandpa’s pension has become the main source of income for thousands of Greek families struggling with unemployment, along with rising living costs and taxes. This shift has been accompanied by a mass evacuation of retirement homes across the country as elderly family members move in with their children and grandchildren in order to make ends meet…”
“…Greece has around 200 nursing homes for the elderly, half of which are private facilities while the other half are run by nongovernmental organizations and the Orthodox Church. Their total capacity is estimated at 15,000 people…before the crisis, these facilities were operating at 100 percent capacity. Today, however, this has dropped to 80 percent as one-fifth of their patients have
“…Taking elderly relatives out of retirement homes has become something of a 'solution’ to the unemployment problem…Most of the unemployed people in this country are surviving on the pensions of their parents or grandparents anyway rather than on their unemployment benefits. If unemployment continues to rise, then so will the evacuation of nursing homes…”
Thanks, Dennis, for providing this comparative information on caregiving.
Sunday, October 6, 2013
As my colleague Kim Dayton reported late last month, the National Women's Law Center has reported new statistics showing a disturbing, 2012 increase in poverty for woman over 65. The New York Times in a weekend editorial takes up the implications of the latest stats, warning against planned cuts in cost-of-living benefits under Social Security.
Hat tip to Professor Ann Murphy at Gonzaga, with special thanks for sharing the editorial -- and supportive words -- during our respective late night writing sessions!
Friday, September 27, 2013
Despite modest gains in the economy in 2012, national poverty rates remain virtually unchanged from last year. However, a new study highlights one group that has unexpectedly fallen deeper into poverty: elderly women. Among women 65 and older, the ‘extreme poverty’ rate rose 18% in 2012. Extreme poverty is defined as an annual income of $5,500 or less for older individuals living by themselves. “The cause has to be something that hits elderly individuals particularly hard,” said Kate Gallagher Robbins, a senior policy analyst at the National Women’s Law Center, who conducted the study. ”We also know that poverty for elderly men and women was statistically unchanged so we are talking about a group of individuals who went from being poor to extremely poor.”
The extreme poverty rate for elderly women ticked up to 3.1% in 2012 from 2.6% in 2011. An additional 135,000 elderly women became categorized as extremely poor, bringing the total number of elderly women in extreme poverty to 733,000. Sixty-two percent of elderly women in this group are white, non-Hispanic, 16% are Hispanic, 17% are black, 4% are Asian and 2% are Native American.
The National Women’s Law Center is currently exploring potential reasons for the sudden increase.
“One factor might be cuts in recent years to Social Security Administration funding which may be making applications for [Supplemental Security Income] more difficult,” Robbins wrote in an email to MSNBC.com. “Without Social Security, almost 15.3 million more elderly individuals would have been poor in 2012, yet many policy makers are debating switching the cost-of-living adjustment to the chained CPI which will reduce the value of benefits for current beneficiaries. Clearly these data show that making such cuts would be unconscionable.”
Another cause for the rise in the extreme poverty rate for this group may have to do with unemployment insurance benefits. Since older workers are more likely to be unemployed for longer periods of time, the likelihood that their unemployment insurance benefits expired, or even cut, between 2011 and 2012 is high.
Wednesday, September 25, 2013
The National Senior Citizens Law Center recently released "Why SSI Needs an Appeal Process that Works," NSCLC's first white paper describing the fate of non-disability claimants who experience improper suspensions or reduction of Supplemental Security Income (SSI) benefits, serious problems compounded by the lack of an effective and fair appeals process. Working with Legal Service programs and advocates around the country, NSCLC has identified pervasive flaws in the system, including the Social Security Administration's failure to:
- Process appeal requests;
- Continue benefit payments during the appeal;
- Conduct conferences required by law; and
- Issue adequate written decisions, permitting effective review or reconsideration.
These due process violations often go unchallenged because of the inability of claimants to find attorneys skilled or interested in handling appeals. The Social Security Act does not provide for awards of attorneys fees to successful claimaints on non-disability SSI appeals. On almost all levels, the system is stacked against the non-disability SSI claimant. NSCLC attorney Kate Lang explains:
"For the low-income individuals who depend on SSI benefits to access housing, food, medical care and other necessities, their inability to pursue an appeal effectively can have immediate, severe consequences. When their income is incorrectly stopped or reduced, these vulnerable individuals face hunger, homelessness and the inability to access vital medications."
NSCLC attorneys are advocates for the nation's elderly poor, and urge specific systemic change. For news stories tracking NSCLC projects to secure the health and financial security of older persons, see NSCLC in the News.
Saturday, September 14, 2013
Via the Wall St. Journal:
A white paper put out by the Center for Retirement Research at Boston College noted that 83% of married couples can benefit from “unusual claiming strategies” commonly known as “file and suspend” and “restricted application.” Both claiming strategies take advantage of the simple fact that for every year that social security benefits are delayed beyond full retirement age, payments increase 8% until age 70. In this time of low interest rates, delaying social security is one of the best financial bargains available to workers. Both strategies ease the pain of waiting by claiming spousal benefits. Once having reached full retirement age (currently 66), a spouse is eligible to to receive benefits based on the earning of a partner. One member of a married couple claims a spousal benefit first and then claims a higher full retirement benefit based on his or her own earnings at a later time up to age 70. Spousal benefits are 50% of the partner's benefit, so some cash is flowing while waiting out as much of the time as possible to age 70. There is no penalty for receiving the spousal benefit during this interim period. For a married person to get spousal benefits, the primary beneficiary must first claim their benefits.
Under file and suspend , the primary beneficiary claims his or her benefit and then suspends receipt. The spouse then claims a spousal benefit. In this case both members of the couple wait to receive the higher deferred benefits, but the couple is receiving the spousal benefit during the interim period. If both defer their benefits, the total benefits the couple can receive can be quite high. If they both wait until 70 to claim their own benefits, their benefits will be 32% higher than the benefits they would have received if they had both claimed at full retirement age.
The second related strategy is filing a restricted application . While this strategy seems to be less well-known than file and suspend, we have found that this is more often the best strategy for a married couple. With a restricted application, the primary beneficiary still needs to claim before the spouse can receive a spousal benefit, but the primary beneficiary doesn't suspend. He or she simply takes a benefit when the claim is made....
Read more in the WSJ.
Friday, September 13, 2013
From the good folks at the National Senior Citizens Law Center, we have a webinar, providing an update on their victory in Clark v. Astrue. That's the class action case where NSCLC was successful in challenging the summary suspension of Social Security or other benefits for individuals with pending arrests warrants or other criminal record entries.
The free NSCLC/NCLC on-line program takes place on September 25, 2013, at 2 p.m. EDT. Details, including registration, available on the NSCLC website: "Fugitive Felons: Clark v. Astrue Implementation for SSI, Social Security & Similar Provisions in Other Benefit Programs."
Tuesday, August 27, 2013
We are seeing a lot of information coming out from the federal government as a result of the Windsor ruling. Most recently, a colleague sent me a link from the IRS site with Answers to Frequently Asked Questions for Same-Sex Couples (last updated July 2, 2013). Among the 8 FAQ (in no particular order) are: "Can same-sex partners who are legally married for state law purposes file federal tax returns using a married filing jointly or married filing separately status?"; "Can a taxpayer use the head-of-household filing status if the taxpayer’s only dependent is his or her same-sex partner?"; and "If a taxpayer adopts the child of his or her same-sex partner as a second parent or co-parent, may the taxpayer (“adopting parent”) claim the adoption credit for the qualifying adoption expenses he or she pays or incurs to adopt the child?".
Meanwhile, over at Social Security, Acting Commissioner Carolyn W. Colvin issued a statement on August 9th "that Social Security is now processing some retirement spouse claims for same-sex couples and paying benefits where they are due." SSA offers several articles on benefits for same-sex couples.
The U.S. Department of Labor (by the way, they have a nifty little intro page about their upcoming 100 year anniversary) issued a revision to Fact Sheet 28F that includes in the definitions spouses in same-sex marriages. LexisNexis Legal Newsroom on Labor and Employment Law, has an interesting article on the extension of FMLA as a result of Windsor, written by Barran Liebman LLP attorneys.
Further, on August 14th, 2013, the Department of Defense announced that it was extending spousal benefits to same-sex spouses of civilian employees as well as uniformed service members. The DoD indicated the benefits would be available no later than September 3, 2013 for those with a valid marriage certificate.
"Entitlements such as TRICARE enrollment, basic allowance for housing (BAH) and family separation allowance are retroactive to the date of the Supreme Court's decision. Any claims to entitlements before that date will not be granted. For those members married after June 26, 2013, entitlements begin at the date of marriage."
The Secretary of Defense sent a memo that explained the actions and noted that since not all jurisdictions allow same-sex marriage, the DoD will issue a "non-chargeable leave" policy for military personnel who have to travel to a state to be married, with an immediately-effective memo supplementing the existing leave policy.
Stay tuned-we will keep you posted with further updates.
Photo by Kim Dayton, © 2013
Friday, August 23, 2013
Friday, August 16, 2013
Recently I was having lunch with a group of friends. One friend, younger than me, commented that she didn't like to tell people she was "retired," because it made her feel too old. We laughed and asked, "Would it be better to tell people you are 'unemployed'?" We all agreed that probably sounded worse.
But, is "retired" really such a dirty word? For some, perhaps yes. For example, AARP used to be an acronym for the "American Association of Retired Persons" but in 1999 the organization changed its official name to AARP, and membership is open to anyone 50 or over, regardless of working status.
Fortunately for researchers, "retired" and "retirement" are still viable terms that generate a lot of important issues. One of my favorite researchers is Gordon L. Clark at Oxford, who writes and speaks clearly and thoughtfully on a number of financial issues, including retirement. His co-authored Oxford Handbook of Pensions and Retirement Income sits on my quick access shelf.
Another resource for statistics and commentary on retirement-related issues is the University of Michigan's Retirement Research Center. Check their website for the latest publications, including data on the impact of proposed changes in Social Security rules on individuals' work and retirement decisions.
Wednesday, June 13, 2012
The U.S. Department of the Treasury has announced that all federal benefits will be paid electronically. New enrollees and individuals receiving benefits must select an electronic payment method (direct deposit or prepaid debit card) by March 1, 2013. Programs affected by the change include SSA, SSI, SSDI and VA benefits. Note: This rule does not affect state-issued benefits such as WIC and SNAP food benefits, or child support. * People who do not choose an electronic payment option by March 1, 2013, or at the time they apply for federal benefits, will receive payments via the Direct Express® card so they will not experience any interruption in payment. * People already receiving benefit payments electronically will continue to receive payment as usual on their payment date and do not need to take further action. Created by the Treasury Department, the Go Direct® public education campaign enlists the support of more than 1,800 local, national and regional partner organizations to spread the word about the many benefits of direct deposit and the Direct Express® Debit MasterCard® card. Partners include banks, credit unions, social service agencies and community-based groups. For more information about the Go Direct Campaign, visit www.GoDirect.org.
The U.S. Department of the Treasury has announced that all federal benefits will be paid electronically. New enrollees and individuals receiving benefits must select an electronic payment method (direct deposit or prepaid debit card) by March 1, 2013.
Programs affected by the change include SSA, SSI, SSDI and VA benefits. Note: This rule does not affect state-issued benefits such as WIC and SNAP food benefits, or child support.
* People who do not choose an electronic payment option by March 1, 2013, or at the time they apply for federal benefits, will receive payments via the Direct Express® card so they will not experience any interruption in payment.
* People already receiving benefit payments electronically will continue to receive payment as usual on their payment date and do not need to take further action.
Created by the Treasury Department, the Go Direct® public education campaign enlists the support of more than 1,800 local, national and regional partner organizations to spread the word about the many benefits of direct deposit and the Direct Express® Debit MasterCard® card. Partners include banks, credit unions, social service agencies and community-based groups.
For more information about the Go Direct Campaign, visit www.GoDirect.org.
Wednesday, May 16, 2012
On May 1, Social Security launched a feature on its website, www.socialsecurity.gov, that allows workers to view an online version of their Social Security earnings and benefits statements. The program also allows you to estimate your retirement, disability and survivors benefits.
You can use this tool to show your kids how little you made when you started working (after you've reminded them that you walked 5 miles to get to school, without an iPod or cellphone). But more important, it can help you receive all of the benefits you're due, and make smart decisions about when to claim them.
Social Security used to mail workers an annual earnings statement, but suspended those mailings last year to save money. Starting in February, Social Security resumed mailing paper statements to workers 60 and older who aren't already receiving benefits. Later this year, it will mail paper statements to workers in the year they turn 25.
Source/more: USA Today
Mitt Romney, in a speech before a conservative group here on Friday, offered his most detailed plan yet to cut government spending and lower the federal debt, including an overhaul of Medicare and significant changes to Social Security. Speaking at the Americans for Prosperity Foundation’s annual meeting, Mr. Romney said his plan would cap spending at 20 percent of gross domestic product by 2016, and would require $500 billion a year in spending cuts. To accomplish this, Mr. Romney explained, he would eliminate all nonessential government programs, including Amtrak, return federal programs like Medicaid entirely to the states and improve the productivity and efficiency of the federal government. He would also immediately cut all nonsecurity discretionary spending by 5 percent across the board.